Let's say that you randomly have breakfast with Warren Buffett and he tells you that he is going to "buy 25% of Burlington Northern( BNI)." What are you going to do? Argue with one of the greatest investment minds out there? I think not. You're going to go out and buy Burlington Northern.
With that in mind, most activist investors have massive resources in terms of analysts, bankers and lawyers to help with proxy fights.
And since most hedge funds get paid based on their returns for the year, managers who don't want to underperform are now turning to shareholder activism as a way to increase shareholder value and ultimately boost their returns.
Here at Stockpickr.com, we track many of the
for those interested in piggybacking these funds. We highlight a few of those situations here.
Mega venture capital firm
believes there may be benefits to exploring a potential strategic transaction between
( GVHR) and TriNet Group.
Gevity, which provides payroll, insurance and HR outsourcing services to small and medium-sized businesses in the U.S., is down about 70% over the past year. Gevity has a forward P/E of 14 and a PEG ratio of 4.6.
Next on the list is
Pioneer Natural Resources
changed its filing status with Pioneer from passive to active. The fund intends to influence the board and management to hedge a substantial portion of Pioneer's oil production. It also believes that with oil prices at record prices, Pioneer's net asset value could be "locked in."
Pioneer has a forward P/E of 12 and a PEG ratio of 1.5.
Next up is
said that he recently had discussions with Amylin and may seek to do so again on ideas to "enhance shareholder value." Always a good idea to pay attention when Icahn gets involved.
Amylin has a 17% short position.
For more activist ideas, including
, check out the
, a Stockpickr portfolio that tracks the latest activist situations recorded by the StreetInsider.com 13D Tracker.Also, here are the latest activist filings from
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